Correlation Between Citigroup and Artis REIT
Can any of the company-specific risk be diversified away by investing in both Citigroup and Artis REIT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Artis REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Artis REIT, you can compare the effects of market volatilities on Citigroup and Artis REIT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Artis REIT.
Diversification Opportunities for Citigroup and Artis REIT
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Artis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of Citigroup i.e., Citigroup and Artis REIT go up and down completely randomly.
Pair Corralation between Citigroup and Artis REIT
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.23 times more return on investment than Artis REIT. However, Citigroup is 2.23 times more volatile than Artis REIT. It trades about 0.15 of its potential returns per unit of risk. Artis REIT is currently generating about -0.14 per unit of risk. If you would invest 6,205 in Citigroup on August 30, 2024 and sell it today you would earn a total of 811.00 from holding Citigroup or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Artis REIT
Performance |
| Timeline |
| Citigroup |
| Artis REIT |
Citigroup and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Artis REIT
The main advantage of trading using opposite Citigroup and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Artis REIT can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Artis REIT will offset losses from the drop in Artis REIT's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Artis REIT vs. Boston Properties | Artis REIT vs. Kilroy Realty Corp | Artis REIT vs. SL Green Realty | Artis REIT vs. Vornado Realty Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |